Should I Invest in Shares in the Ford Motor Company?
Never invest money that you don't have, and never invest in anything that you do not believe in. That all being stated, could the Ford Motor Company be a good investment?
Stock Price Decrease And High Dividends
First of all, let us consider that the company has had a decrease in the price of its individual stocks by about 50% since 2014. For some, this fact may dissuade them from any and all desire to invest. However, I like to also consider the comforting fact that this overall decrease has not seemed to pose any noticeable negative effects to the dividends offered by the corporation. In fact, regular quarterly dividend payments have been on the rise (with a couple of special high payments to make things even better).
What does all of this mean? For me, I note a company with very cheap shares (about $8.86 USD per share at the moment) and relatively high dividend payments (about $0.15 USD per share). I also have personal faith in the company, as it has continued to persevere for more than 100 years (the Ford Motor Company was founded in the year of 1903). I can't promise anyone that the business will never go under. There are, indeed, a lot of very good competitors today that weren't here in our yesterdays. Still, I don't see it going anywhere. I could always be wrong, but I like to think that I am usually right.
Have you ever owned a Ford vehicle?
Will It Make Me Rich?
The simple answer is, "No, dividends will not make you rich." I invest in dividend stocks as a security for retirement. That isn't to state that good things cannot still happen. Who knows; maybe Ford's share prices will skyrocket up to the moon! I doubt that being the case, but if such a thing did happen, it would seem a shame to have missed out. Realistically, I see Ford shares as a stable, reliable, and trustworthy way to make a little extra with the money that I already have to spare. Personally, I just want a farmhouse, a loving wife, and my degrees hanging somewhere; I'm not in a great need to be the next billionaire. But, one should be smart with one's personal finances, right? That's exactly what I am doing. But, as one doctor cannot recommend the same cure for all of her patients, I cannot recommend the same path for everyone; seemingly insignificant variables can have a huge impact on the rest of our lives and how we can best live them. Know that I am not telling anyone to invest in this nor in that; but, I am merely demonstrating that there can be, in some cases, potential benefits.
Is Ford Worthy of Loyalty?
I have much love for Ford. Three of the four vehicles I have owned have all been Fords. I love the Lincoln Town Cars of the early 90's, and the vehicles made under the Mercury subdivision. Moreover, despite Ford's infamous recalls, the company continues to be loved. Perhaps, the recalls in and of themselves demonstrate a level of honesty. Do not think that this means I am okay with some of the events in Ford's history; injury and death are tragic occurrences and additional safety measures must be enforced. The point is simply that a part of me will likely always stand with the Ford Motor Company; I love these cars so much!
- Ford Motor Company (F) Dividend Date: History - Nasdaq
See the upcoming ex dividend date and dividend history for Ford Motor Company (F).
Anyway, back to the primary center of focus. Regardless of what we think about Ford's history, most of us can probably agree that Ford shares are, in many scenarios, a great investment. There was one surprisingly high $0.55 (per share) dividend payment in 2016, and a $0.28 payment in 2018. This is not something to take lightly either; many businesses seem to have rigidly persistent dividend payments (if any at all). These occasional jumps could be implicative of more in the following years; who know, but the idea is exciting! If we add up all of the dividends from 2018, then we get $0.73. If one could expect at least that for each of the following years, then it would only take about 12 years to gain one's money back (if one invested at about the current price). When considering other businesses on the stock market, that is just incredible!
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
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© 2019 Alexander James Guckenberger